Saad Khan

Saad Khan News

Pakistan is set to extend a six-month pause in interest-rate increases as inflation eases and the government prepares to tighten fiscal policy amid concern the killing of Osama bin Laden will lead to a cut in U.S. aid.

Pakistan confirmed Ashraf Mahmood Wathra as central bank governor, the third person to hold the job in four years, as the nation overhauls the economy to meet conditions on an International Monetary Fund loan.

Pakistan’s unexpected interest-rate cut, almost three weeks after a governor resigned blaming state spending for inflation, shows the pressure the central bank faces from the government to reduce borrowing costs.